Horwath Looks West for Economy-Crashing Advice

Housing tax increase among multiple NDP job-killing policies

Saturday, June 2, 2018

TORONTO – NDP governments across Canada have a proven track record of job-killing policies and sneaky tax hikes on the middle class and businesses.

This disturbing trend is starting to repeat itself here in Ontario, where Andrea Horwath has promised to increase corporate tax rates, add new employment costs onto businesses, raise business property taxes by more than $1 billion annually and disrupt the stability of the housing market with a new housing speculation tax modelled on a failed BC NDP policy.

Now we know why.

According to the Hill Times, Andrea Horwath has leaned on prominent members of British Columbia’s NDP to help bolster her election team.

This month, the BC NDP government will celebrate their one year anniversary in power. Highlights from their first year in office include more than $5.5 billion in new taxes to fuel their spending. BC also introduced radical housing measures that were immediately and widely criticized as being detrimental to the economy. Criticism was so strong that it forced the government to walk their reforms back:

“The “speculation tax” will significantly slow development and seriously damage West Kelowna’s economy through the loss of construction related jobs. The tax will reduce revenue to the city’s budget garnered through increases in our tax base and development cost charges which are used to assist in our ambitious upgrade of our infrastructure from rural to urban standards.” - Vancouver Courier, April 10, 2018

Horwath would repeat BC’s mistake. And she’s ignoring the fact the Ontario Liberal Fair Housing Plan has had the desired effect of cooling and stabilizing the housing market. BMO’s Chief Economist, Doug Porter, said that the Ontario Liberal housing measures hit the bullseye, and delivered a calmer market without collapse. But this doesn’t matter to Horwath.

Along with the NDP tax increases came a loss of 34,600 private sector jobs across British Columbia – a worrying direction that Horwath is heading towards.

That’s not a record to celebrate nor is it a path to follow.

Doug Ford wants to cater to developers and cancel the foreign homebuyers tax, and Horwath wants to disrupt the housing market further by targeting domestic buyers. Both are extreme responses to a housing market that has calmed and stabilized.

Only the Ontario Liberal plan will provide a balanced approach that creates jobs and strengthens the economy.